SINGAPORE: Japanese rubber futures climbed to a three-week high on Wednesday, driven by optimism surrounding Sino-US trade talks this week and supply concerns from top producer Thailand, but muted demand kept a lid on prices.
The Osaka Exchange (OSE) October rubber contract added 2.1 yen, or 0.71%, to close at 299 yen ($2.09) per kg. Earlier in the session, the contract touched 302.4 yen, the highest since April 15. The September rubber contract on the Shanghai Futures Exchange (SHFE) traded flat at 14,810 yuan ($2,049.51) per metric ton.
The most active June butadiene rubber contract on the SHFE rose 150 yuan, or 1.34%, to 11,375 yuan ($1,574.15) per metric ton. US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s economic tsar, He Lifeng, this weekend for talks that could be the first step toward resolving a trade war disrupting the global economy.
German premium carmaker BMW said it expected some of the US tariffs on car imports to decline from July, but warned the duties will have a “notable” second-quarter impact on its business.
Automobile sales could influence the intensity of vehicle manufacturing, which involves using rubber-made tyres. “Thailand’s Agriculture Minister Narumon Pinyosinwat requested farmers to delay rubber tapping by one month to help support local prices,” Japan Exchange Group said.
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